The reason was explained in a background document stating “The consensus at the time was that having a plan and giving direction as early as possible would allow us to work towards that plan, and more importantly to make progress in closing the gap on our infrastructure deficit by putting as much of any possible tax increases towards this cause as we can.”
At the most recent regular meeting of Yorkton Council (Nov. 15), Ashley Stradeski - Director of Finance with the City provided a broad overview of the annual budget process.
Stradeski said internally he begins with the basic idea of running a ‘status-quo’ operating budget, one that provides the same level of service as the previous year. He added that doesn’t mean spending the same dollars as costs change on the operating side, and savings and efficiencies can be identified.
In terms of cost changes Stradeski noted later that the City is already anticipating some major cost increases on the operations side of things in 2022, including a $1.4 million increase in the RCMP contract, much of that a one-time catch-up for back wages on the new contract.
Other anticipated increases include $330,000 in negotiated salary increases, as well as hikes in insurance costs, fuel, natural gas and electricity.
Stradeski told Council he is expecting approximately $2,350,000 in added costs to provide the same service level in 2022.
Still, the City has been doing well, suggested Stradeski, with a 10-year average increase to operations of 1.36 per cent, while the Consumer Price Index (CPI) for the same period was 2.08 per cent.
This means the City has held firm on operational expenditure increases over this time period, coming in at less than inflation, on average, for ten years, he explained.
More recently the five-year operating increase on average was 1.2 per cent per year, compared to the CPI at 2.46 per cent.
Stradeski also referenced a Canadian Taxpayers Federation Report looking at a number of Saskatchewan cities comparing per capita spending. Yorkton was shown to spend $2,765 per person, compared to Saskatoon at $2,978, Regina at $2,766, Estevan at $2,746 and North Battleford at $2,732.
Looking at the upcoming 2022 budget Stradeski said the goal he and other City staff are working toward is to maintain service levels at current standards, while finding efficiencies where possible and keeping a tax increase as low as possible.
When it comes to ‘efficiencies’ Stradeski said they are not always cost savings. For example, you might save time with the purchase of technology so you become more efficient but it costs you money to achieve it.
Still, as they work through the budget process each department head looks at operations to find the best way to do things, said Stradeski.
